How does the British pound trade against the Australian dollar historically?

With strong historical ties between the UK and Australia, the pound and the Aussie dollar has enjoyed a fairly even playing field.

On February 14, 1966, Australia introduced the Australian dollar to replace the Australian pound. The strength of the Aussie dollar became apparent when the British pound was devalued against the US dollar in 1967. The Australian dollar has better resisted global changes ever since.

More recently, the global financial crisis in 2008 affected both the British pound and Australian dollar. The Australian dollar reached highs of 2.474488 per pound in October 2008, from 2.065693 in July of 2008. It gradually strengthened and by August 2009 had dropped to under two dollars per pound.

The effects of “Brexit” on currency exchange

Since Brexit — or Britain’s proposed exit from the European Union — in June 2016, the British pound has declined against several currencies, including the Australian dollar. From June 2016 to July 2016, the GBP to AUD exchange rate went from 1.9675 to 1.7520. It has remained between 1.6 and 1.7 pounds to the Aussie dollar since the Brexit vote.

Though the British pound is historically stronger than the Australian dollar, Brexit could lead to a weaker pound as the British economy remains volatile.

GBP > AUD exchange rate history

We’ve put together the annual average exchange rate for the British pound against the Australian dollar from 2007 to 2016.

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

GBP = AUD

1.825806

2.036194

1.826278

1.623018

1.530340

1.553389

1.683697

1.991784

2.187308

2.390299

Here’s the monthly average exchange rate for the British pound over the past 12 months.

Month

GBP = AUD

Jan. 2017

1.656809

Dec. 2016

1.701185

Nov. 2016

1.656284

Oct. 2016

1.622004

Sept. 2016

1.733502

Aug. 2016

1.716483

July 2016

1.745075

June 2016

1.916495

May 2016

1.987331

April 2016

1.867060

March 2016

1.899159

Feb. 2016

2.006041

What affects GBP > AUD exchange rates?

Five main factors affect the British pound and Australian dollar, including monetary policy, price inflation, confidence and sentiment, economic growth using the gross domestic product (GDP) and the balance of payments. These factors can offer a comprehensive view of the direction a currency is going.

A clear example of how this works happened in 2015. Heavy flooding in Australia’s eastern states — particularly in Queensland — affected Australia’s GDP and inflation. A primary factor used to gauge the health of a country’s economy, the GDP went on to affect how the Australian dollar traded in global markets. From June 2015 to February 2016, the Australian dollar remained above 2.0 to the pound.

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Bottom line

By doing your research to find the best exchange rate when transferring money from the UK to Australia, you can make your money go further. With Brexit leaving the British economy on unstable ground, keep an eye on the market before exchanging your pounds to the Aussie collar.

Frequently asked questions

In Australia’s early days, but after a decade of federation, Australian coins — pounds, shillings and pence — were introduced as the new currency in 1910. In 1966, after the devaluation of the British pound, Australia replaced the pound with the Australian dollar.

That Australia is part of the Commonwealth of Nations — former British colonies or dependencies of these colonies — has no effect on the GBP/AUD exchange rate.

The area of flooding — Queensland, Australia — is larger than France and Germany combined. Queensland accounts for 20% of the Australian economy, 60% of global coking coal exports and 28% of Australia’s fruit and vegetable production. Flooding slowed down or ceased production in this area altogether, damaging Australia’s economic performance and ultimately affecting Australia’s GDP.

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